Q4FY21 Company Update - Matrimony.com Ltd - ICICI Direct

Matrimony.com's revenues increased 4.6% QoQ (up 7.5% YoY) to Rs. 101.1 crore, mainly led by 4.6% QoQ (up 8.3% YoY) growth in matchmaking services (led by 6.4% QoQ growth in pricing). EBITDA margins declined 179 bps QoQ (up 322 bps YoY) at 17.1% mainly led by higher other expenses. PAT increased 8.1% QoQ (up 49.4% YoY) to Rs. 10.1 crore. Billing increased 6.6% QoQ (10.8% YoY) to Rs. 106.7 crore mainly led by 6.3% QoQ (12.0% YoY) growth in matchmaking services. The company has declared a dividend of Rs. 3.5/share.

Valuation & Outlook

In the near term we expect the company's billing and revenues to be subdued QoQ due to lockdowns. However, we expect revenue and billing growth to improve from Q2FY22E onwards led by healthy subscriber growth, increasing market share in north and easing of lockdowns & vaccinations. In addition, introduction of new products (like IIMIIT matrimony) and inorganic opportunity (due to healthy cash) are expected to drive revenues in the long term. Further, expectation of stable advertising expenses and operating leverage benefit are anticipated to lead to healthy margins. This, coupled with leadership in an underpenetrated online match making industry and strong cash flow generation prompt us to maintain BUY rating on the stock with a target price of Rs. 1,070 (30x PE on FY23E EPS) (earlier target price Rs. 1070).

For details, click on the link below: Link to the report

Shares of Matrimony.com Ltd was last trading in BSE at Rs.887.95 as compared to the previous close of Rs. 917.85. The total number of shares traded during the day was 4869 in over 836 trades.

The stock hit an intraday high of Rs. 925 and intraday low of 882. The net turnover during the day was Rs. 4401890.

Source : Equity Bulls

Keywords